JACK-CALI wrote:

- quote -

FPPTX is FPA Capital, calling itself a small value fund, it has 37% in
cash and 3.5% in bonds so <60% in stock. Given all of your cash, I'd
think you'd want a fund that's strictly stock, not this type of mix. The
fees are only .83%, not too bad, but for only 60% stock. So this feels
like 1.2%/yr.

VGENX is an energy sector fund, .28% expense. It's done well for the
last 3-5 years, but in your mix it stands out like a sore thumb. I'm not
a sector chaser, I believe a diversified portfolio would have the market
represented and there's little need for individual sectors to be
overweighted. Unless you have some gut feel that a given sector is bound
to continue to outperform. In this case, you chose well, your choice to
keep it, and diversify around it as you move into a more balanced portfolio.

VFINX - Vanguard's S&P 500 index fund, the daddy of indexing. .18%
expense. If the average investor invested in this (and cash of course)
and nothing else, that person would be ahead of most of his friends.
This was John Bogle's theory which proved itself correct after much
criticism, but I digress. This makes a nice core holding, and some well
chosen mid/small cap funds as well as overseas funds pretty much create
a diversified mix.

Fellow poster here, Elle, has links for Asset Allocation at her blog;
http://home.earthlink.net/~elle_navorski/id8.html
A nice mix of sites that will give you some food for thought.
JOE

"joetaxpayer" <joetaxpayer[at]nospam.com> wrote in message
news:5_-dnX8uJvY8FKbbnZ2dnUVZ_qOpnZ2d[at]comcast.com...
- quote -


In one of his responses on this thread, he says he does participate in his
401k. However, he appears to be one of those highly compensated employees
(?) and is limited to annual contributions of $5k. I believe this is why
he's looking for direction on his post-tax money.

Elizabeth Richardson

darkness39[at]yahoo.com wrote:


- quote -

The difference between having a portfolio last 30 years and 35 is
minimal in terms of withdrawal rate or conversely, the targeted lump sum
needed. With the OP being 37, and having a decent start (although his
profile is incomplete, no mention of 401(k) or his income level), I'd
suggest his goal be a 'normal' retirement, early 60's.
FWIW, on a log scale, with level investments (as a percent of income)
and a goal of 20X final income saved, at 37, one would have 4X their
annual income in their savings/retirement accounts.
I posted this spreadsheet at http://www.joetaxpayer.com/saving.xls for
those who wish to download. It's pretty rudimentary.
JOE

On May 4, 3:50 pm, rick++ <rick...[at]hotmail.com> wrote:
- quote -

Particularly if you are under 40, the increase in life expectancy is
also something you have to think about. Life expectancy has been
increasing at a torrid pace of late (I don't have the exact figure,
but at the moment, a British male of 65 is gaining something like 2
months of life expectancy, every year he lives).

Your life expectancy could be as much as 5 years longer than what you
might think, now. Inevitably, this means as a society we are going to
have to retire later, on average. Symptoms of this include lower
annuity rates available now than a few years ago (also because
interest rates are lower, but that too might be a sign of aging in the
developed world-- an increased preference for 'safe' assets).

So definitely don't target retiring before 65, and I would argue for
someone in their 30s now, who is in good health with no life-
shortening conditions, 70.

rick++ <rick303[at]hotmail.com> writes:

- quote -

Note that the "target retirement" funds really are directed at saving
towards retirement, where you will be withdrawing the money over a
long period of time after the target date, than for saving for other
purposes and withdrawing the money all at once on the target date.
Such funds might indeed be buying more stocks than you would predict
(or that you'd consider prudent), if you are trying to use them for
shorter-term savings goals instead of retirement.

-Sandra the cynic

Simplest is "target year funds". Decide what year you may need
money for house, childrens college, retirement, etc. Then let the
fund determine appropriate asset mix for safety. They may be
buying more stocks than you would predict.

Thank you guys a LOT..

As for the company 401k, I participate as much as I can, however
because the company breaks some qualifying 'rule' they are severly
limiting my 401k contribution... only about $5k a year... that's why I
want to find the best 'route' for the other money which I'm doubting
is my regular old bank savings account's interest...

JACK

PS. are the 3 mutual funds I listed any good? (thanks for the advice
on the book... I will definetely get it)

On May 3, 3:32 am, JACK-CALI <ijul...[at]sbcglobal.net> wrote:
- quote -


well it depends. If you are in a short term CD getting a little over
5% that may not be that bad.

- quote -

Buying a rental property is also investing. Which is best depends on
a lot of factors.

- quote -


You are not going to get specific advice here that's good. There are
just not enough information here. So I would suggest spending a
little money on some education. Start with a general financial
planning book. Jane Bryant Quinn is a good writer in this area.


- quote -

Thank you guys a LOT..

As for the company 401k, I participate as much as I can, however
because the company breaks some qualifying 'rule' they are severly
limiting my 401k contribution... only about $5k a year... that's why I
want to find the best 'route' for the other money which I'm doubting
is my regular old bank savings account's interest...

JACK

PS. are the 3 mutual funds I listed any good? (thanks for the advice
on the book... I will definetely get it)

JACK-CALI wrote:

- quote -

First, I agree with what everyone else has said.

As to the two choices you've presented above, well, there's no easy
answer. Rental property can be lucrative, but I think it takes more
knowledge and time to be successful at landlording than it does at
buying a few mutual funds or something. I've tried being a landlord
myself, and personally I hated it. It was basically another job. You
could hire a management company - however, that just eats up return.
But that's just me - others here have had a good go of it.

-Will

"John A. Weeks III" <john[at]johnweeks.com> writes:

[prettymuch, "what John said"]

- quote -

Except that I'm pretty sure he means "Personal Finance for Dummies"
by Eric Tyson. Which I recommend here all the time.

In short, there's nothing wrong with cash in the
short term. Take your time, do some reading and then,
only then, pull the trigger and invest it.

BTW, if your cash ("savings account") is not earning 5%,
move it to a bank that pays decently, or to a good
money market mutual fund.

--
Plain Bread alone for e-mail, thanks. The rest gets trashed.
No HTML in E-Mail! -- http://www.expita.com/nomime.html
Are you posting responses that are easy for others to follow?
http://www.greenend.org.uk/rjk/2000/06/14/quoting

On May 3, 6:32 am, JACK-CALI <ijul...[at]sbcglobal.net> wrote:
- quote -


Issue 1) learn your retirement options

such as
a) 401k
b) 457
c) 403b
d) SEP IRA
e) Roth IRA
f) traditional IRA

My preliminary advice is to "save 10%". Meaning set aside 10% of your
gross income to a retirement account. If you work for a private
company, this is often a 401k plan. If you work for the government,
it would not be a 401k.

Regardless of employer you qualify for a traditional IRA (whether or
not contributions are deductable is another issue). If your income
level is less than 150k, you might be eligible for a Roth IRA. Pros
and Cons to each, but choosing one or other to help you save for
retirement is a good thing.

Part of issue is knowing what choices are in a 401k... and how to
choose among those choices.

I agree with John.

Frank

In article <1178178083.799633.299860[at]p77g2000hsh.googlegroups.com> ,
JACK-CALI <ijulian[at]sbcglobal.net> wrote:

- quote -

I'd prefer someone who admits that they are a novice as opposed
to someone who is a broke day-trader. If you were the day trading
type, I doubt that you would be in the great position that you are
in right now.

- quote -

Take the advice of that rabbit and don't leap before you look.
Holding off for 3 or 6 months isn't going to make that big of
difference. With that kind of money, you want to make sure that
you do the right thing once you make your move.

- quote -

I am not hearing anything about retirement accounts here. That
is job number one -- contact your HR people, TODAY, and set up
your retirement options, and fully fund them. If you don't have
retirement options at work, then see your banker or broker.

My suggestion is to read the book Financial Planning For Dummies.
Despite the name, and hey - you are not a dummy - it is very good
book written by someone who is top notch in this field. The
bottom line is that no one cares as much about your money as you
do, and pretty much everyone else just wants to take it away from
you. You have to be able to tell what makes sense, and what is
a rip-off.

Once you have this background, then we can talk turkey.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

Looking for some help... Im not sure what to do with some money in the
bank but Im not 'obviously' the day-trading knowledgable type..

I have about $100,000 to invest but it is in a stupid bank savings
account. Im guessing thats not good. Im fine on the job bringing in
money and dont necessarily need the money for anything short term.
That being said, I wonder if in California it is wiser to a) buy a
rental property or b) invest somehow? which is where I need the help!

I also have $47,000 in a brokerage. $26,000 is in money market (is
that good?) and $21,000 is in 3 investments (FPPTX, VGENX, VFINX)...
Theres where the naive part comes in.. im not sure what the best step
is for where all that money 'should' be...

If anyone could give me a few scenarios it would be greatly
appreciated.. oh, and im 37.

JACK!